Many legal tech startups are working to enhance the workflow for lawyers, with some specifically targeting solutions around intellectual property (IP). A standout in this sector is Solve Intelligence, a startup utilizing AI to assist patent attorneys in drafting and generating IP analyses.
Based in Delaware, Solve Intelligence has successfully raised $3 million in funding from prominent investors, including Y Combinator, Amino Capital, General Advance, SAV, Translink Capital, and Nomad Capital.
Both Sanj Ahilan, Chief Research Officer, and Chris Parsonson, CEO of Solve, completed their PhDs in artificial intelligence at University College London. They are acutely aware of the time and cost challenges associated with obtaining patents, having faced these issues while working at renowned tech companies like Huawei and Dyson. Chris also learned from his patent attorney girlfriend about the scarcity of software options tailored for patent attorneys beyond standard tools like Microsoft Word.
In June 2023, Ahilan, Parsonson, and Angus Parsonson (Chief Technology Officer) founded Solve Intelligence, launching their innovative product in July.
"Patents differentiate themselves from other legal sectors because they intertwine technology with patent law," noted Chris Parsonson. "Drafting a patent not only requires legal knowledge but also specialized technical insight."
He further explained that while many legal professionals frequently enter courtrooms or review contracts, patent attorneys typically gain extensive technical expertise through advanced STEM education. This preparation includes years of study culminating in a law degree and passing the bar exam, leading to their full qualification as patent attorneys. Consequently, the algorithms and AI systems essential for drafting and reviewing patents significantly diverge from those used in other areas of legal technology.
Solve's primary offering is an in-browser document editor akin to Google Docs, enhanced with AI capabilities specifically designed for intellectual property drafting. This AI can identify key elements of novelty and non-obviousness, facilitating the research and development process. As Parsonson explained, each approved patent establishes what is considered "novel" and "non-obvious" in relation to existing technologies in the public domain.
“Our AI swiftly identifies the most promising novel and non-obvious steps, ranks them based on commercial potential, and forwards these findings to the IP firm collaborating with the tech company to commence patent drafting,” Parsonson added. He also mentioned that the AI assists with patent portfolio infringement litigation following the patent's creation.
Currently, over 25 IP firms across the U.S., Europe, Asia, and South America are using Solve's product, with many reporting efficiency boosts of 60-90%. In its early stages, the startup is generating recurring revenue between approximately $100,000 and $1 million through its per-seat subscription model.
The patent analytics market is projected to expand significantly, increasing from $1.3 billion in 2022 to $5.18 billion by 2032.
However, some attorneys remain hesitant to adopt this AI product due to confidentiality concerns surrounding generative AI tools like ChatGPT. Since undisclosed inventions are highly sensitive until patented, such apprehension is understandable.
“Attorneys who choose not to engage with us due to confidentiality worries often lack understanding of the distinctions between large language model training and inference,” Parsonson noted. “We believe this concern will diminish as awareness of AI technology advances. Our system employs end-to-end encryption for data security in both transmission and storage, utilizing enterprise-level AWS servers, which offer robust security assurances.”
Solve ensures it does not train on clients’ data while employing a variety of proprietary models and algorithms optimized for patent drafting and broader IP analysis. The startup is actively seeking patents for many of these inventive methods, collaborating with its IP firm clients to secure these with the assistance of its AI technology.
Looking ahead, Solve believes that within the next five years, AI will become commonplace in the legal field. "The key to success will lie in those who rapidly refine their products to genuinely benefit legal professionals," the CEO explained. "That’s why our team is composed of skilled AI PhDs and software development experts, allowing us to build features that our users truly need, faster than our competitors."
While other companies, such as PatSnap, Cipher, and IPRally, create software for IP focusing on prior art searches and technology classification for R&D teams, rivals like Harvey AI, Robin AI, and Casetext concentrate on aiding legal professionals in drafting contracts and integrating relevant case law without a focus on patents. Solve specifically targets generative tasks related to patents, such as drafting and responding to office actions.
“There are numerous exciting opportunities for our product to enhance various stages of the intellectual property lifecycle; patent drafting is just the start,” Parsonson stated.
The startup plans to utilize its funding to expand its team, accommodate the influx of new clients, and advance R&D for its next generation of patent drafting features, scheduled for release in the coming months. These updates will include algorithms and processes aimed at using AI to generate and analyze technical drawings, enhance patent quality, and customize drafting styles to suit individual attorneys' preferences.
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